This Is What It’s About
No matter whetherit is Swiss Rail’s railway network, energy supply systems, airports or transport hubs: infrastructure connects and supplies communities, bundles small units into streams and relieves the burden on the individual. It prevents chaos and saves costs.
The infrastructure of SIX generates, transmits and stores transaction and financial data. It networks financial market participants in the areas of securities trading, financial information and cashless payments. SIX thus secures the flow of money and information between these parties – in Switzerland and around the world.
If every bank had to establish and operate its own infrastructure, this would be not only inefficient and expensive, it would also require a commitment of resources that financial institutions could deploy much more meaningfully somewhere else, for example in advising and supporting customers.
The Infrastructure Is Growing with the Challenges
Infrastructure must be stable for the long term, yet remain flexible and scalable at the same time. That applies to the financial market infrastructure at SIX, too. Its core has existed for more than 20 years: the Swiss Value Chain enables end-to-end electronic data processing of a securities transaction concluded on the Swiss stock exchange – from when the order is entered until the securities are placed into central custody.
In the mid-1990s the Swiss Value Chain was a novelty. Since then, the requirements placed on the financial market infrastructure have risen steadily. New technologies, international competition, complex regulatory requirements: the costs to maintain the infrastructure have grown, while the margins have fallen. SIX is therefore pursuing a strategy, called Advanced Services, which aims to acquire further scalable services of banks and financial institutions, and to bundle them on its infrastructure. The goal is to realize an above-average increase in the profitability of its infrastructure by generating new turnover. These economies of scale will benefit everyone participating in the financial market.